(Attached Instructions File as well with same information)
Perform
a financial analysis on a set of financials of a publicly traded company, in
this case Amazon.com INC (NASDAQ: AMZN). Definition: A financial
analysis report is constructed by a person who is researching a company,
usually with the intent of recommending its stock to investors or to a board of
directors. The report contains multiple components, such as company overview,
investment essentials, valuation, risk analysis, and a summary. However, for
the purpose of this paper, the focus will be on the investment essentials.
In this component – “investment essentials”, you will need to analyze the
financials by using ratio analysis, trend analysis, and provide a quick summary
of your findings.
Financial
statement analysis is the process of analyzing a company’s financial statements
to understand its overall health and evaluate its financial performance and
business value. Corporate financial analysis focuses on analyzing the
capital structure of corporations, including the source of funding, the market
value of shareholders, and other financial resources. There are five common
approaches to financial statement analysis: Horizontal analysis, Vertical
analysis, Ratio analysis, Trend analysis.
Using
the financials of the publicly traded company, Amazon.com INC (NASDAQ: AMZN) answer
the following questions:
1.
Please provide a summary
of the industry – discuss the following:
1) Brief summary of industry
2) Talk about top 5 competitors (i.e. market share, profit
margin, etc..)
3) Discuss profit margin in the industry.
4) Discuss growth rate for the next 3-5 years.
5) List the source (s)
2.
Please recreate the
financial statements for the previous 3 years using Excel
1) Recreate the Income Statement
2) Recreate the Balance Sheet
3.
Please create a
Common-size Financial Statement and discuss your findings.
1) i.e., (Cost of Goods Sold) COGS
is x% of revenue. This line item has increased during the past x years, etc….
2) i.e., (Accounts Receivable) A/R is x% of
Total Assets. This line item has decreased during the past x years.
3) Discuss any trends from the Common size calculations.
4) Calculate average for each line item for both Common-size
Income Statement and Common-size Balance Sheet
4.
Please use your trend
analysis to project the Income Statement (3 years)
1) Project the Revenues using trend analysis from the past 3
years
2) Use Common-size Income Statement to project every line item
under the total revenue.
Formatting
3) Use 12-font, double spaced, Times New Roman font for the
Word document
4) Must format the Excel file properly (decimal places,
tables, label for each tab, etc…)
You will need to submit two (2) documents for this case:
1.
An Excel file to show
your calculation and projections
2.
A word document for
#1.1-1.5, #3.3, 5.1.
Include all references used
for document and info